Bank of America’s offer to settle investigations into its sale of toxic mortgage securities is another attempt by the United States to maintain stability in its fragile economy, an analyst says.
“This is obviously just another attempt to maintain stability in a totally fragile international financial system and to maintain as much of the fictitious value of the banks as is possible,” Bill Jones from Executive Intelligence Review told Reporters.
“This has been the policy of the Obama administration in context of a debate going on in Congress, where they want bank separation that is realizing that most of the present financial system is based on fictitious values, they’re calling for separating the legitimate banking operations from all this fluff that exists in the financial system,” he added.
Bank of America offered to pay nearly $17 billion to settle investigations into its shoddy mortgage conducts ahead of the financial crisis of 2008.
The settlement deal, which is the biggest in US history if formally announced, came after the Justice Department rejected another settlement offer from the bank last week.
The deal was reached July 30 during a phone conversation between Attorney General Eric Holder and Brian Moynihan, CEO of the nation’s second-largest bank.
The deal surpasses a similar $13 billion settlement with JPMorgan Chase last November.
“The banks of course don’t want that because they expect payment for these fictitious values they’re holding, so the administration which effectively bailed out the financial system has to be seen doing something to ‘get tough with the banks, but their getting tough is a really a compromise on trying to save as much as can be saved of the worthless values,” Jones said. “It’s simply a fight among thieves both of them are trying to maintain the value of the theft that has been made against the consumer and against the population by this whole bubble economy and they just have to come to a conclusion on where they want to land up on that,” he concluded